SASB issues provisional standards for financial sector

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26 Feb 2014

The Sustainability Accounting Standards Board (SASB) has issued provisional standards for industries in the financial sector. The standards are the second set in a planned series of industry-related standards by the SASB on accounting for environmental, social, and governance (ESG) issues that could be material to a corporation’s performance.

The standards focus on material sustainability matters that corporations are already required to disclose in their Form 10-K or 20-F filings with the United States Securities and Exchange Commission (SEC). They provide standardized accounting metrics and concentrate on ESG issues applicable to seven financial industries:

  • Commercial banks
  • Investment banking and brokerage
  • Asset management and custody activities
  • Consumer finance
  • Mortgage finance
  • Security and commodity exchanges
  • Insurance

The SASB plans to develop standards for more than 80 industries in 10 sectors. Its standards-setting process “includes evidence-based analysis with in-depth industry research and engagement with a broad range of stakeholders. The end result of this process is the creation of a complete, industry-specific accounting standard which accurately reflects the material issues for each industry.”

The Boards’s first set of standards focused on the health care industry.

The provisional standards are available for download on the SASB website (registration required).

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